Germany threw Spain a lifeline to cut its record youth unemployment yesterday under a deal that will offer work to up to 5,000 jobless Spaniards each year. Ursula von der Leyen, the German Employment Minister, signed a memorandum of understanding with her Spanish counterpart, Fátima Báñez, in Madrid.

Unemployment among those aged 18-24 in Spain stands at 57 per cent but in some parts of the country two out of three young people are jobless. Under the agreement, Spaniards or Germans will be offered training and a work placement in either country.